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Ontario’s New 45 Day Tarion Rule: An Important Deadline for Freehold Home Buyers
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M. Wajahat Faizan
May 8, 2026
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Purchasers of newly constructed freehold homes in Ontario should be aware of an important new requirement that may affect their deposit protection rights.
As of April 1, 2026, purchasers must register their Agreement of Purchase and Sale with Tarion within 45 days of signing. The registration is completed online through Tarion and requires basic details about the purchaser, builder, property, and deposits paid. Tarion’s registration portal can be accessed here: https://myhome.tarion.com/s/purchase-agreement-registration
While the process is simple, missing the deadline may have serious consequences. Under Ontario’s new home warranty framework, purchasers of eligible freehold homes may receive deposit protection of up to $60,000 for homes priced at $600,000 or less, or up to 10 percent of the purchase price to a maximum of $100,000 for higher priced homes. However, purchasers who fail to register within the required timeline may lose access to the full protection available and instead fall within a separate limited compensation pool for late registrations.
In practical terms, this becomes essential if a project is delayed, cancelled, or a builder is unable to complete the development. The purpose of the new rule is to strengthen consumer protection and help identify illegal building or unlicensed selling activity earlier in the process. It also allows Tarion to confirm that a project is properly enrolled and covered under Ontario’s warranty system.
Purchasers should not assume that the builder or sales representative has completed the registration on their behalf. Although assistance may be provided during the transaction, ensuring the registration is completed within the required 45-day period ultimately remains the purchaser’s responsibility.
Given the significant deposits often involved in preconstruction transactions, purchasers should ensure they understand both their contractual rights and the warranty protections available to them before moving forward.
At Kormans LLP, we regularly assist clients with preconstruction and resale transactions across Ontario, including agreement reviews, status certificate reviews, closing support, and risk assessment relating to new home purchases. If you are considering purchasing a newly constructed property, our team would be pleased to assist you throughout the process and help ensure your interests remain protected. Connect with one of our lawyers today at info@kormans.ca or +1 905 270 6660.
Faizan’s academic background includes a Juris Doctor (J.D.), an LL.M. from Aberdeen Business School in Scotland, and an LL.B. (Hons.) from the University of London. He has also earned certifications in Construction Law and Public Policy from the prestigious Osgoode Hall Law School, showcasing his diverse expertise across multiple areas of law. After being called to the Ontario Bar in 2020, he gained experience in real estate, commercial, and immigration law at a boutique firm before joining Kormans LLP.
Specializing in a wide range of legal services, Faizan focuses on residential and commercial real estate transactions, financing, wills and estate planning, and contractual matters. His expertise also extends to Islamic wills and Sharia-compliant financing, where he offers culturally sensitive solutions tailored to the needs of diverse clients.
Faizan’s thought leadership is evident in his published articles on Islamic wills and Halal mortgages, which can be found on the Kormans website. His expertise extends beyond Islamic wills, with a deep understanding of real estate law showcased through writings on topics such as Tarion warranties, joint tenancy, and easements. These works highlight his broad knowledge of property law and commitment to providing clients with clear, informed guidance.
In addition to his contributions to real estate law, Faizan has made significant strides in immigration law. His representation before the board in the landmark case of Vilcassim v. Canada helped establish a crucial precedent in children’s rights within Canadian immigration law.
With a strong background in law, Faizan continues to teach as one of the pioneering professors in the Graduate Diploma in Immigration and Citizenship Law program at the prestigious Queen’s University, where he shares his practical experience and knowledge with future professionals.
His contributions to the legal field were recognized with the Queen Elizabeth II Platinum Jubilee Award Pin, honoring his dedication and service to immigration law. He is also the recipient of the King Charles III Coronation Medal, a prestigious award recognizing contributions to community and public service. This recognition was granted through a rigorous selection process led by the Mississauga Streetsville Community Leadership Association and the Canadian Heraldic Authority at the Chancellery of Honours, Rideau Hall.
Outside of his professional life, he enjoys travelling, has a passion for cricket, plays weekend squash and frequently participates in youth mentorship programs.
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